IAA Urges Extension of Temporary Enforcement Policy under a PTE for Investment Advice Fiduciaries

The Investment Adviser Association ("IAA") urged the DOL to extend a temporary enforcement policy (Field Assistance Bulletin ("FAB") 2018-02) related to Prohibited Transactions Exemption ("PTE") 2020-02 ("Improving Investment Advice for Workers & Retirees"). IAA requested a six-month extension after the December 20, 2021, expiration date.

As previously covered, PTE 2020-02 allows persons who are fiduciaries under ERISA, as a result of providing investment advice, to receive compensation and engage in certain transactions that otherwise would be prohibited under ERISA and Internal Revenue Code Section 4975 ("Tax on Prohibited Transactions").

IAA also requested that the temporary enforcement policy under FAB 2018-02 be extended if the DOL plans to take any additional regulatory actions, noting that the DOL's April FAQ stated that it anticipates additional amendments to DOL rules.